Nvidia Poised to Weather Tariff Storm with AI Focus, Says Analyst

Nvidia can survive tariff uncertainty and is a top pick, says Redburn Atlantic

Nvidia may be able to weather a semiconductor slowdown induced by tariff uncertainty, according to Redburn Atlantic. The firm, which has a buy rating on the artificial intelligence chip darling, named Nvidia as a top pick for when turmoil moderates in the space. Its price target of $178 reflects nearly 61% upside from Monday's close. "We expect corporate narratives on end markets to strike a cautious tone, pointing to macro uncertainty and potential demand softening," analyst Timm Schulze-Melander wrote in a Tuesday note. "We assess that leading-edge AI and chipmaking investment will prove to be more resilient." Shares have come under pressure over the past couple months, seeing a fall of more than 20% in that timeframe, amid increasing concern among investors over President Donald Trump's tariff policy. NVDA mountain 2025-02-15 NVDA, 2-month While the Trump administration on Friday exempted semiconductors -- along with smartphones, computers and other tech devices and components -- from his "reciprocal" tariffs, the president and top trade officials later revealed that the exemptions would be partially or completely reversed in the near future. Schulze-Melander said that a slowdown in AI innovation would threaten its positive outlook on Nvidia more than a decline in the U.S. economy, as that would hurt the recovery in global PC and handset sales - which collectively account for 35% of global semiconductor sales. "This could undermine accelerated compute investment plans, which would be an incremental negative for DRAM, GPU, CPU and networking chip suppliers," the analyst also wrote. "This would have implications along the entire length of the semiconductor supply chain, not just at Nvidia." "We expect strategically important data centre modernization to be among the last areas to be cut - providing resilience compared with the broader cycle," the analyst added. Most of Wall Street is bullish on the chipmaker to date. Specifically, 57 out of 63 analysts have a strong buy or buy rating on the name, per LSEG. Only six have stepped to the sidelines with a neutral stance. Nvidia also has an average target of roughly $169, which implies more than 53% upside from here.

Nvidia Remains a Top Pick Despite Tariff Headwinds, Says Analyst: '...Important Data Center Modernization...Among the Last Areas to Be Cut' - NVIDIA (NASDAQ:NVDA)

In the face of a potential semiconductor industry slowdown due to tariff uncertainties, Nvidia Corporation NVDA is expected to hold its ground, according to a recent analysis by Redburn Atlantic. What Happened: Redburn Atlantic on Tuesday, highlighted Nvidia's potential to endure the industry's turbulence. The firm maintains a buy rating on Nvidia and has named it a 'top pick' for investors once the sector's turbulence subsides. The price target for Nvidia stands at $178, indicating a substantial 61% upside from Monday's closing price, reported CNBC. According to analyst Timm Schulze-Melander, despite macro uncertainties and potential demand softening, investments in leading-edge AI and chipmaking are expected to show resilience. Schulze-Melander further stated that a slowdown in AI innovation would pose a greater threat to Nvidia's positive outlook than a U.S. economic decline. "We assess that leading-edge AI and chipmaking investment will prove to be more resilient," stated Schulze-Melander. SEE ALSO: Ironically, Because Of All The New Tariffs, It's Now Way Cheaper To Make Our Chocolate Bars Outside The US,' Says MrBeast Why It Matters: Nvidia's resilience can be attributed to its strategic focus on AI infrastructure. On Monday, Nvidia announced plans to develop $500 billion in AI-related infrastructure across the United States over the next four years. This move signals a significant shift in the company's global supply strategy. President Donald Trump praised CEO Jensen Huang and credited the tariff policies for driving Nvidia's massive commitment to build AI infrastructure in the United States. Trump's upcoming tariff plan on imported semiconductors emphasizes the desire to manufacture semiconductors domestically, which aligns with Nvidia's recent commitment. That being said, the current macroeconomic environment against the backdrop of tariffs is full of uncertainty and Redburn Atlantic acknowledges that. Schulze-Melander stated that a slowdown in AI innovation poses a greater risk to Nvidia's positive outlook than a U.S. economic downturn, as it would impact the recovery of global PC and handset sales. However, the analyst expects the phenomenon to impact the entire semiconductor supply chain, not just Nvidia. "We expect strategically important data center modernization to be among the last areas to be cut - providing resilience compared with the broader cycle," stated the analyst. Benzinga's Edge Rankings highlight strong momentum and growth rankings for Nvidia in the 77th and 95th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks. READ MORE: Speaker Mike Johnson Says Government Must 'Eliminate People On Medicaid' Who Are 'Not Actually Eligible To Be There' Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. NVDANVIDIA Corp$110.30-0.37%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum76.84Growth94.82Quality97.28Value6.97Price TrendShortMediumLongOverviewGot Questions? AskWhich semiconductor stocks could benefit from tariffs?What impact will Nvidia's AI investment have on competitors?How might AI infrastructure spending affect tech ETFs?Will data center modernization drive growth in related sectors?Which chipmakers are positioned to thrive amid uncertainty?How can tariff policies reshape the semiconductor landscape?What other companies might invest heavily in AI?Could global semiconductor supply chains face disruptions?How will macroeconomic factors influence semiconductor demand?Which emerging tech firms could emerge as leaders in AI?Powered ByMarket News and Data brought to you by Benzinga APIs